Mary is considering opening a hobby and craft store. Mary plans to operate the business for...

Mary is considering opening a hobby and craft store. Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. Ignore income taxes in this problem.) The data pertaining to her investment opportunity are:

Cost of equipment $ 175,000

Working capital needed $ 185,000

Annual cash inflow from sales $ 190,000

Annual cash outflow for operating costs $ 145,000

Salvage value of equipment $ 20,000

Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the net present value of this investment?

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ekkarill92 answered 1 year ago

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